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Business Cycle Fluctuations, Large Shocks, and Development Aid

Business Cycle Fluctuations, Large Shocks, and Development Aid »

Source: Business Cycle Fluctuations, Large Shocks, and Development Aid : New Evidence

Volume/Issue: 2010/240

Series: IMF Working Papers

Author(s): Era Dabla-Norris , Camelia Minoiu , and Luis-Felipe Zanna

Publisher: INTERNATIONAL MONETARY FUND

Publication Date: 01 October 2010

ISBN: 9781455209408

Keywords: foreign aid, bilateral donors, business cycle, macroeconomic shocks, aid flows, bilateral aid, development aid, dynamic effects, Macroeconomic Analyses of Economic Development,

We examine the cyclical properties of development aid using bilateral data for 22 donors and over 100 recipients during 1970?2005. We find that bilateral aid flows are on average procyclical with respect to busines...